China YuHua seeks consents to amendments, waivers under convertibles

By Marisa Wong

Los Angeles, Jan. 12 – China YuHua Education Corp. Ltd. is soliciting consents from holders of its 0.9% convertible bonds due 2024 (ISIN: XS2089158609) to some amendments and waivers in relation to the bonds, according to a company announcement on Thursday.

As previously disclosed, the bonds were putable at par on Dec. 27. Holders holding the entire outstanding principal amount of the bonds had exercised the put option. However, the company did not redeem the bonds on the put date, which triggered an event of default under the bond conditions.

The company and an ad-hoc group of bondholders have been in discussions to enter into a supplemental trust deed and a supplemental agency agreement to, among other things, restructure the terms and conditions of the convertible bonds and waive some conditions.

The company said it expects to begin the process of seeking approval to implement the proposed transactions by way of electronic consents as soon as practicable. With that, the company is seeking consents from bondholders to sanction the proposal.

The company is asking holders to approve the extraordinary resolution via electronic consent.

To be approved, the proposed amendments and waivers require consents from holders of at least 90% of the aggregate principal amount of bonds outstanding.

The consent deadline is 11 a.m. ET on Jan. 18.

No consent fee is payable in connection with the electronic consents.

As of Jan. 12, there is HK$1,474,000,000 principal amount of the bonds outstanding.

Morrow Sodali Ltd. (https://projects.morrowsodali.com/ChinaYuHua; chinayuhua@investor.morrowsodali.com; +852 2319 4130, +44 20 4513 6933) is the tabulation and information agent.

Bank of New York Mellon, London Branch (fax: +44 20 7964 2509, attn.: trustee administration manager; with a copy to Bank of New York Mellon, Hong Kong Branch at fax: +852 2295 3283; attn.: global corporate trust) is the trustee and principal agent.

China YuHua is a Zhengzhou, China-based provider of private education services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.